Abraham has just purchased his first car.His bank,First State Bank,loaned him the money to buy the car and has required him to purchase insurance to protect the car as the collateral for the loan.Which basic types of coverage should Abraham buy to satisfy the bank requirement and to protect himself from the risks of operating an automobile?

Question

Quizplus · Accepted Answer

Collision coverage will protect the car in the event of an accident. Comprehensive coverage will protect against non-collision events such as theft, vandalism or natural disasters. Uninsured motorist coverage will protect Abraham if he is in an accident with someone who does not have insurance. Liability coverage will protect Abraham if he is found to be at fault in an accident and must pay for damages or injuries to others. Therefore, the best choice is D, which includes all of these types of coverage.

Abraham Has Just Purchased His First Car